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Common Stocks and Uncommon Profits

Developing An Investment Philosophy

Origins of a Philosophy:

In this chapter, the author starts by talking about his Company, Fisher & Co., and its investment philosophies. After this, he talks about his personal history, his first experience with stock markets, etc. He further discusses how he developed an interest in stock markets.


He explains how he survived the crashing market of the 1920's and what we can learn from it. Initially, Fisher made a lot of bad decisions and lost most of his money. He learned from those mistakes and gradually became a better investor.


Learning from Experience:

In this section, the author talks about a company called Food Machinery Corporation. He says that this company was very small in nature, but had an efficient management, a good product line, and a great research team. Additionally, it had an excellent marketing team.


The Philosophy Matures & Is the Market Efficient?


Fisher talks about how he has made mistakes throughout his career.

He says over the 4 decades of his investment experience, there have been a lot of opportunities to make money from the stock markets.


The greatest investment opportunities came from finding extremely attractive stocks that were significantly undervalued.

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